The District Court has convicted two former top executives of China Motion Telecom International for swindling more than $12 million in consultancy fees.

Its former chairman Hau Tung-ying, 54, and former executive director Li Bin, 40, were found guilty of one count of conspiracy to defraud. The case has been adjourned to February 10 for mitigation.

Between September 2000 and April 2005 the defendants conspired with others to defraud the company and its two wholly owned subsidiaries - ChinaMotion NetCom (Asia) and China Motion Holdings.

Without the knowledge of the board of directors the defendants dishonestly caused NetCom to enter into three consultancy agreements with two contractors, Bioroad Developments and Headwise International.

According to the agreements the contractors would provide professional services for the operation of NetCom in the Asia-Pacific and North America at a monthly consultancy fee ranging from $100,000 to $432,000.

In fact, the contractors, under the control of the defendants, had never provided NetCom with any consultancy services. However, payments totalling $12 million were released under the consultancy agreements.